Exasol AG — Earnings Release 2021

Feb 16, 2022

Investor Call on Preliminary Figures 2021

Aaron Auld (CEO), Jan-Dirk Henrich (CFO)

Feb. 16, 2022

Copyright © 2022 Exasol. All rights reserved.

Disclaimer

DISCLAIMER

This presentation contains future-oriented, forward-looking statements ("Forward- looking Statements"), estimates, opinions, projections and forecasts representing the current assessments and views with respect to anticipated future performance of Exasol AG. These assessments, views and Forward-looking Statements are subject to changes. There are uncertain conditions that are for the most part difficult to predict and are beyond the control of Exasol AG. Exasol AG is not under any obligation to publish any information resulting in changes in framework conditions or to publish revised information.

The information in this presentation as well as the Forward-looking Statements are of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neither Exasol AG nor any of its directors, officers, employees, agents or affiliates undertakes or is under any duty to update this presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information. The Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "aims", "plans", "predicts", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding Exasol's intentions, beliefs or current expectations concerning, among other things, Exasol's prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved.

• CEO at Exasol AG since July 2013
• Responsible for the strategic direction of the company, communications as well as key business relationships

Aaron Auld, CEO Jan-Dirk Henrich, CFO/COO

• CFO/COO at Exasol AG since September 2021
• Responsible for finance related departments including Accounting, Controlling, Legal/Compliance and Investor Relations as well as Human Resources and Internal IT

Summary of key points

FINANCIALS 2021

(preliminary and unaudited)

ARR: 30.5m€ (+29%) Revenue: 27.5m€ (+17%)

Adj. EBITDA: -30.9m€ (2020: -8.7m€)

Liquid Funds: 27.2m€ (2020: 69.5m€)

• Annual Recurring Revenue (ARR) of 30.5m EUR in 2021, up 29% vs 2020 on a like-for-like basis
• Revised outlook for 2021 (30-31m EUR ARR) achieved
• Revenue came in at 27.5m EUR, up 16.6 % vs. 2020
• Adj. EBITDA decreased to -30.9m EUR (2020: -8.7m EUR) after fast ramp up in Jan.-Sept. 2021
• Reorganisation executed in Oct. 2021 already bearing fruit: EBITDA in Q4 2021 at –7.9m EUR (incl. 1m EUR oneoffs) compared to -8.7m EUR in Q3 2021
• Liquid assets stood at 27.2m EUR at end of 2021 providing enough headroom to meet mid-term targets

Outlook 2022+

• ARR/AAC to grow to 38.5 to 40.0m EUR at constant FX in 2022
• Adj. EBITDA to improve significantly to -14 to -16m EUR
• Liquid Funds to stand at 10 to 12m EUR end of 2022
• Operating cash break-even to be reached in the course of 2023
• ARR/AAC to grow to 100m EUR in the course of 2025 without further equity injection

Continued ability to convert and upsell large-scale data players in key verticals

	New customers since 2021 (examples)	+ Strong upsell performance with existing customers (examples)
Financial services	Multinational banking Corp., UK 15bn USD rev./a
	Multinational insurance Corp., DACH 10bn EUR rev./a
	Multinational re-insurance Corp., DACH 24bn EUR rev./a
Industry	One of the biggest global conglomerates, US 70bn EUR rev./a
Healthcare	Multinational Pharma Corp., DACH 18bn EUR rev./a	80 customers (> 37% of total) increased their business with Exasol in the past 12 months

Customer Structure by sector

Comments

• 50% of customers come from 4 industries / verticals

• Financial Services
• Retail / eCommerce
• Software / IT / Data processing
• Media / Publishing / Online Platforms
• Leveraging domain reputation in these verticals key part of focused go-to-market strategy in 2022

Exasol maintains top performance ratings across multiple independent benchmarks and reports

• • DB Products" and "DWH" Technologies"

most ambitious organizations

• Best-in-class in 5 categories (vs 4 previously)

• Remains leader for vendor credibility and customer experience in 5 consecutive years

• Best in class across 20 measures

• 100% customer recommendation rate

• New entrance in Magic Quadrant Report December 2021 as "Niche Player"

• Confirmation of our mission to be the

analytics platform trusted by the world's

• Increased number of top-rankings from 18 to 26 categories vs peer group "Analytical

• 100% customer recommendation rate
• Moved from Contender to Strong Performer in the latest Forrester Wave™: Cloud Data Warehouse, Q1 2021

\$744 \$711* \$85 Price/kQphH in USD (30 TB) Cost per kQphH – lower is better Microsoft SQL Server 2019 OceanBase V3.2 Exasol 7.1

Dresner positioning of Exasol against competition

*Converted from the original currency

Exasol has been awarded "Tech Partner of the year" by AWS

Details on SaaS product

Exasol SaaS

Insights in minutes

• Out-of-the-box experience
• Setup database cluster in minutes
• Easily import data via integrated capabilities or external tools
• Run queries instantly via Web-based worksheets

Elastic scaling

• Scale up to increase compute power (Different cluster sizes XS – 3 XL)
• Scale out to isolate workloads with increased concurrency and separate workloads (multi-cluster)
• Only pay for what you use (OPEX over CAPEX)

Fully Managed

• Operated and administrated by Exasol
• Auto-patching, updating & backup

Financial Results 2021 (unaudited)

by Jan-Dirk Henrich, CFO

ARR development 2021

In EUR million, # of customers

Preliminary and unaudited figures

Comments

• Gross ARR retention rate at 125% (vs. 122% in PY)
• Net ARR retention rate at 121% (vs. 115% in PY)
• ARR churn rate at 4% (vs. 7% in PY)
• Customer churn rate at 5% (vs. 7% in PY)

* At comparable FX rates and methodology

ARR development – By geography

In EUR million, # of customers

Preliminary and unaudited figures

Comments

• DACH region continues to be the strongest growth driver for overall ARR increase, supported by strong NRR rates
• US and UK successfully increased their customer base in 2021, with several new large accounts converted, bearing upselling potential for the future
• But: new customer acquisition in US and UK in terms of total number was lower than originally planned

ARR development 2021– By quarter

In EUR million, # of customers

Preliminary and unaudited figures

Comments

• Quarterly development of ARR shows seasonality peaking in Q4
• After comparatively weaker Q1-Q3, more than 40% of growth occurred in Q4
• Year-end heavy pattern will persist in 2022 as enterprise selling still dominates and SaaS sales will ramp-up gradually in the course of 2022

* At comparable FX rates and methodology

P&L Adjustments

In EUR million

Preliminary and unaudited figures

	2021 (rep.)	2020 (rep.)	Adjustments 2021	Adjustments 2020	2021 (adj.)	2020 (adj.)
Revenue	27.5	23.6	-	-	27.5	23.6
Gross Profit	26.6	22.3	-	-	22.4	22.3
Personnel expenses	-38.9	-37.3	+1.5	+15.6	-37.4	-21.7
Other income / expense	-12.7	-15.0	-7.4	+5.7	-20.1	-9.3
EBITDA	-25.0	-30.0	-5.9	+21.3	-30.9	-8.7
EBIT	-27.4	-34.1	-5.9	+21.3	-33.4	-12.8
EBT	-27.5	-34.3	-5.9	+21.3	-33.4	-13.1
Net income	-28.3	-34.3	-5.9	+21.3	-34.2	-13.0

Adjusted effects

• Costs for IPO and equity increase in 2020
• IPO-related Stock Appreciation Rights (SAR) for employees
• IPO-related Stock Appreciation Rights (SAR) for board members

Adjusted P&L FY and Q4

In EUR million, in percent

Preliminary and unaudited figures

	Q4 2021	Q4 2020	Δ%	FY 2021	FY 2020	Δ%
Revenue	8.1	5.9	37.2	27.5	23.6	16.6
thereof recurring	6.7	5.3	26.7	24.8	19.0	30.3
thereof non-recurring	1.5	0.7	120.9	2.8	4.6	-40.0
Capitalized own work	0.5	0.5	0.0	2.3	1.9	20.2
Gross Profit	7.7	5.3	46.4	26.6	22.3	19.5
Gross Profit Margin	94.8%	88.9%	-	96.8%	94.4%	-
Personnel expenses (adj)	-10.5	-8.7	21.0	-37.4	-21.7	72.4
Other income/expense (adj.)	-5.0	-3.6	40.7	-20.1	-9.3	>100
Total Costs (adj.)	-15.6	-12.3	26.7	-57.5	-31.0	85.7
EBITDA (adj.)	-7.9	-7.0	-11.9	-30.9	-8.7	>-100
EBITDA Margin	-96.9%	-118.8%	-	-112.3%	-36.8%	-

Comments

• Gross Profit slightly increased in 2021 remaining on a high level well above 90%
• Strong increase in personnel expenses due to a ramp up of work force in Q1-Q3 2021
• Other costs also increased to cover further growth momentum
• Reorganization measures normalized spendings in Q4 2021

Quarter-by-quarter cost and EBITDA

In EUR million, in percent

Preliminary and unaudited figures

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021	FY 2020	Δ%
Revenue	6.1	6.9	6.3	8.1	27.5	23.6	16.6
Gross Profit	6.4	6.1	6.4	7.7	26.6	22.3	19.5
Personnel expenses (adj.)	-6.6	-10.6	-9.7	-10.5	-37.4	-21.7	72.4
Training and Recruiting	-0.5	-0.7	-0.4	-0.3	-1.9	-1.3	46.8
Marketing	-2.1	-3.0	-3.4	-2.4	-10.9	-3.7	>100
IT infrastructure	-0.4	-0.4	-0.4	-0.3	-1.4	-1.3	8.5
Others (adj.)	-1.0	-1.6	-1.3	-2.0	-5.8	-3.0	93.5
Total Costs (adj.)	-10.7	-16.2	-15.1	-15.6	-57.5	-31.0	>100
EBITDA (adj.)	-4.3	-10.1	-8.7	-7.9	-30.9	-8.7	>-100

Headcount development by quarter

In # of people

Preliminary and unaudited figures

Comments

• Ramp up of the organization mainly in Q1 and Q2 2021
• Reorganization in Q4 led to a decline of 13% in headcount compared to Q3, total annualized target compensation even decreased by 25%
• Biggest reorganization efforts were taken in global functions situated in the U.S.

EBITDA to cashflow reconciliation

In EUR million

Preliminary and unaudited figures

Change in Liquid Funds by quarter

In EUR million

Preliminary and unaudited figures

Liquid Funds* Changes in liquid funds excluding XO**

* incl. short term financial assets

** excl. effects from pre-IPO stock programs and costs of equity increase

Outlook 2022

by Aaron Auld, CEO and Jan-Dirk Henrich, CFO

Grow to 100m EUR ARR/AAC in the course of 2025 by becoming the preferred analytics database in the high performance enterprise analytics market

Key USPs at core of vision

• Industry-leading performance
• Infrastructure cost efficiencies
• Platform independence (multiple Cloud platforms & on-premise)
• Superior user concurrency
• Ease of use and automation
• Innovation

2022 will see significant progress in completing the USP at the core of our vision

Where Exasol's strength matters

Retail / E-Commerce > 50k employees; >14bn EUR sales

• 50% cost savings
• 1000's of concurrent users without loss of performance
• Connectivity and support across multiple programming languages and systems

Healthcare/Pharma > 3k employees; >6bn EUR sales

• 70% reduced loading time
• Packet assembling reduced from 10 days lead-time to real-time
• x 4-10 times # of concurrent queries
• Reduced code deployment from 3 days to 5 hours

Healthcare/Pharma > 100k employees; >17bn EUR sales

• 10bn lines of data analyzed in under 2 min
• > 1.500 concurrent users at unmitigated performance

Experience

Impact

"Exasol's analytics database proved impressive. Primarily due to an excellent price-performance ratio: low cost combined with exceptional performance and integration in Hadoop"

Andreas Bonet – Product Owner

"In addition to the convincing price/performance ration and the outstanding performance of Exasol, we were impressed by the objective approach of the sales team . From the very beginning a very cooperative partnership was apparent."

Stefan Scheller – Manager BI & Analytics

"Exasol inspires us again and again. The system runs extremely smoothly, practically maintains itself, does not degenerate and is always performant - a real quantum leap from the previous database system."

Thomas Lober, Director CoE Business Intelligence

Clear business priorities resting on three pillars…

…supported by specific initiatives and actions

SaaS; cost elasticity on all platforms; added automation capabilities; added connectivity

internal processes; focus on

development; performance

management

complexity reduction

Financial outlook 2022: Stable growth at significantly improved operating leverage

	2021	2022	2023-25
ARR/AAC*	30.5 m€	38.5 to 40.0 m€ (at constant currency)	• 100m EUR ARR/AAC* in the course of 2025 without further equity injection
Adj. EBITDA**	-30.9 m€	-14 to -16 m€	• Stable growth in 2022/23 with acceleration in 2024/25
Liquid Funds (year end)	27.2 m€	10 to 12 m€	• Operating cashflow break even in the course of 2023
Incl. 2.7 m€ of XO cash-out for pre IPO stock programs Average Annual Revenue (Subscriptions) / Average Annual Consumption (Consumption based pricing) * Excluding effects from pre IPO stock programs 27

Financial calendar 2022

Thank You

Copyright © 2021 Exasol. All rights reserved.